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[–] idrinkamp 0 points 1 point (+1|-0) ago  (edited ago)

Not to mention that the labor theory of value does not account for technological or methodological advancements in production.

If in year 1 a car costs z price, and requires x amount of labor hours, then in year 2 they develop a new manufacturing procedure that cuts labor hours down significantly, the price will not necessarily drop (at least not completely comparative to the decreased labor cost). This is because while the labor cost in (capital and hours) has dropped, the value of the car has not diminished.